Economic Aspects articles:
Workshop taps ways to build fresh citrus returns and markets.
By Robert C. Coleman, reprinted with permission from
Citrus Industry Magazine, Vol. 76, No. 9

Florida citrus producers continue to meet US consumer demands for more fresh citrus - marketing millions more boxes of oranges, grapefruit and specialty fruit in the ‘94-‘95 season than the year before. But a continually greater effort looms ahead as a necessity in the face of growing citrus supplies and competition from other domestic and world citrus producers.
A closer look at supply and demand shows certain trends converging, with the latest focus on market reports showing the US public would eat even more of selected citrus and other fruits and vegetables if these items were "more convenient to eat or prepare".
While certainly not new as findings go, ‘90's trends such as convenience are causing more grower-marketers to realize that the changing size and makeup of the American family, with its shifting purchasing patterns, warrants more precise scrutiny and follow-up. Robert Barber, Director of Economics, Florida Citrus Mutual, recently touched on the most salient changes occurring in US households (reduced in size from 3.14 to 2.63 in 20 years - from 1970 - 1990). He sees such trends affecting current and future purchasing behavior:

  1. Increasing numbers of single and childless "two earner" households don't take time to prepare meals.
  2. Increasing percentage of females in the work force (40.8% worked in 1970, increased to 54.3% in 1990.)
  3. Increased consumption of non-citrus fruits - up 23.2 lbs per person from 1970 to 1993.
  • Bananas and grapes account for 13.6 lbs. or 60% of the increase. Growing demand for convenience: Bananas are portable, easy to peel, while grapes can be washed and eaten or put into baggies for all-day snacking.
  • Year round availability: Traditionally, a summer fruit, winter grapes from South America have accounted for a large share of increased grape consumption, and have become a source of competition for citrus.
  1. For Florida, the impact of increasing California Navel production has been especially hard on later season varieties such as Valencia and Temples. Both varieties have suffered long term declines in both shipments and real prices, says Barber. Easy-to-peel characteristics appear to have helped "Honey" Tangerines, since the production rebound after the ‘89 freeze brought shipments back to late ‘70's levels, with a slight increase in real prices.
  2. Early and mid-season varieties have been impacted to a lesser degree by California. Early varieties like Navels can benefit from the window between the end of the California Valencia season and the start of that state's navel season:
  • Early - Mid Oranges: Long term volume and real prices are flat, as Navel shipments have increased substantially at the expense of other Early - Mid oranges.
  • Early Tangerines: Rebound in production after the ‘89 freeze brought shipments back to early ‘80's levels with a slight increase in real prices. Competition from imported tangerines (Mexico, Spain and Morocco) can be a problem at times.
  • Tangelos: Long-term decline in shipments and share of crop utilized fresh is evident. Although trending upwards during the ‘80's, real prices turned down in the ‘90's as Florida shipments of other easy peeler varieties (Early and Honey tangerines) have rebounded.
  1. Florida grapefruit shipments increased 6.7 million boxes or 36% from ‘73 - ‘94. Despite this trend, real prices held up fairly well due to growth in export demand and long term decline in Texas production. Export demand accounting for more than 100% of the increase in shipments (up 7.9 mil. boxes, ‘73-‘94) has benefitted from the long term decline in US dollar value. Florida grapefruit, as a result, has been made more affordable overseas.

Domestic shipments rode a long-term decline due to the increase in availability of more convenient non-citrus fruit. Florida domestic shipments were down 16% (2 mil. boxes) from ‘73 - ‘94. Domestic volume rebounded after the ‘89 freeze as Texas was absent from the market for several seasons, but has declined again as Texas recovered. (TX/FL off 5.7 mil. boxes, or 30% - ‘73 - ‘94).

Bigger Grower Returns?
Robert Barber was one of a number of speakers at the 1995 Fresh Fruit Workshop held recently at the Lake County Agricultural Center, Tavares, to examine "Factors Impacting" the Florida fresh citrus industry. Costs involved in getting fresh fruit to market, such as pick and haul, packing and marketing, were addressed by Ron P. Muraro, Area Farm Management Economist, University of Florida, IFAS, CREC, Lake Alfred. He reviewed actual costs aggravated by pitfalls in producing/marketing tangerines (supportive reference material for presentation was provided by Stan Bronson, general manager, Callery Judge Groves, Palm Beach County).
He asked,"Will we survive the ‘90's?" To make sure "we do", he asked growers to carefully review these key points and problems, ones often overlooked:

  1. Keep uppermost - specialty fruit returns hinge on packout.
  2. Consider any expense reduction that hurts crop quality as devastating to returns.
  3. Consider any expense not seriously affecting quality as "excess baggage".
  4. Ask: "What can we do to make fruit larger for a more positive effect on our returns?"
  5. Remember, certain FOB's are generally scaled by big sizes.

Review these packing considerations carefully, said Muraro:

  • Control harvesting costs as much as you can.
  • Consider large fruit less costly to pack, especially if sold roadside.
  • Pack specialty fruit gently - even if it means packing less. Reducing damage pays off.
  • Take a positive role in "tracking" fruit after it leaves the grove. Follow up for market insights.
  • Have a packing business mail or fax marketing responses/effects to you. Feedback is vital.
  • Best plan: Create new markets for specialty citrus. "If we gain $10 for every $1 spent, then we've held nothing back" and will probably stay ahead of the game.
  • Finally, cut costs continually. It's critical. "You've been paid for size and color." Anything that helps economically is worth pursuing. For example, a necessary size of Navels is now increasingly evident. Large species are more vital today. Also, "Avoid grapefruit to grainy and coarse when big. Consumers are turned off." They will remember it the next time.

Post-harvest Guidelines
How to work with packers, harvesters, and marketers to increase packout and "put more dollars in your pocket" was the message brought out in "guidelines" by Dr. Will Wardowski, Extension - Post Harvest Handling, U. of Fl., CREC, Lake Alfred.:

  1. Increase Packout: Pay close attention to these concerns:
    a) Fruit size. Only the market acceptable sizes obtain higher fresh fruit prices, especially for navel oranges and mandarins.
    b) Fruit color. Test degreen crops which are marginal for market color, and spot pick if necessary for color.
    c) Select and grow crops with limited blemishes from insects, melanose and rust mites. These can be influenced by production practices.
    d) Eliminate unpackable and damaged fruit as early as possible. Every step (harvesting, hauling, fungicides, waxes, drying, packages, transportation, and marketing) adds to the cost, and to the loss when a fruit is later removed for blemishes, or worse yet, decay.
  2. Postharvest guidelines:
    a) Careful harvesting reduces injuries
    b) Degreening with the best conditions increases market color with the least amount of time and fruit weight loss.
    c) Fungicides applied in a timely manner, and in correct concentrations, can protect against many kinds of decay.
    d) Sanitation in the packinghouse pays in better season-long fruit quality.
    e) Temperature and humidity control after packing and during transportation can lengthen the shelf life of the fruit.

Work on Packout Factors
John L. Jackson, citrus-fruit extension agent, Lake County, believes fresh fruit growers need to reexamine all the major factors that reduce packout. He included some reminders on pre-and-post harvest activities that could improve product quality:

  • Control rust mites (usually May to September problem) by using a spray program that rotates narrow spectrum miticides, with a minimal effect on beneficial organisms, working to rotate away from organophosphates. He noted lots of rust mites found on Sunburst tangerines this past season, and advised careful attention to controlling mites in ‘95-‘96.
  • Control scale insects, but use pesticides only if you have to (reducing populations with a single application if possible to avoid additional spraying.) Too many overall sprays run up fuel costs and quickly become an economic concern. Rely on beneficials, i.e., wasp species, for major control. Mealybugs will be an occasional grapefruit problem requiring chemical control, while stinkbugs, a fruit drop concern, can often be adequately handled through cover crop management.
  • Control melanose - usually a bigger concern for grapefruit with all varieties susceptible. Use the first application when fruit attains a diameter of ¼ to ½ inch (about mid-April to early May, depending on local conditions). Additional applications should be made at 3 week intervals until fruit becomes resistant. (A single application is usually sufficient for oranges and most tangerines unless trees have abundant dead wood.)
  • Control greasy spot - usually mid-June through September - with an oil or oil/copper spray program that's usually most important on early spring and summer flushes. Blemishes on grapefruit are critical as well as on Temples, he reminded.
  • Control Alternaria (A. citri) fungi: Dancy tangerine is a first concern, says Jackson. But also Orlando and Minneola tangelos, among others. He notes Alternaria was also found on Sunburst tangerines this year. "If the pressure is heavy, it gets on anything. You look on young leaves for yellow spots."
  • Brown rot (Phytophthora citrophthora, etc), especially noted in wet falls and on fruit exposed in the lower portion of the tree. Use copper applications to control brown spot lesions on fruit once it has attained a diameter of 0.5 inch or more.

Harvest and Handling Tips
Ways to tighten up Harvesting and Handling Practices were offered by Dr. G. Eldon Brown, Plant Pathologist, Florida Dept. of Citrus, CREC, Lake Alfred. He urged growers to:

  • Reduce oil spotting and peel injury damage to navels by delaying harvest after heavy rains, and monitoring fruit turgidity using a pressure tester as a guide for when to harvest. Use proper brush speeds during washing and waxing; do not use a polisher dry.
  • Spot pick for color to decrease degreening time of Robinson and Fallglo tangerines; the color factor is critical.
  • Sanitation: Cleanup to minimize green mold spore population, and prevent resistance buildup to fungicides. Keep equipment clean, separating dump from packing area - a big assist in managing spores in the packing area. Do not repack cartons with spores in the packing area.
  • High pressure washes have improved packout by removing sooty mold more effectively. Control of aphids and whiteflies in the grove will effectively reduce sooty mold.
  • Don't overpack cartons. Pre-cool citrus shipments before they go onto truck. Pre-cooling compliments fungicide and wax treatments to keep quality intact.

What's Happening Abroad?
Genetic, marketing and consumer developments in citrus outside the US will in one way or another have a growing effect on Florida's future production and marketing plans. Dr. Fred G. Gmitter, horticultural geneticist, CREC, University of Florida, noted numerous changes taking place at all levels - from grower to market - trends calling for careful analysis:

  • Mandarin consumption continues to climb in Europe (heavily produced in the Mediterranean area.) Consumers like the "smaller sized, easy peeling" fruit that's portable. Clementines fit well into that category. They have no seeds, make excellent snack food and fit today's consumer tastes. They are quite popular when they come on earliest in the Spring.
  • OJ consumption continues its upward trend in Europe, but runs side-by-side with a decrease in fresh oranges consumed.
  • A seedless "Oroblanco" - a white grapefruit similar to Florida's White Marsh - is now coming on strong from Israel. Called "Sweetie", this Israeli grown product is now growing in popularity in Germany. (See also Citrus Industry, Feb. ‘95 "citrus economic conference report".)

Changes in practices are being directed at marketing needs, including consumer tastes, says Dr. Gmitter. In Mediterranean growing areas, for instance, more pruning is being used to control size of trees, fruit and quality. In effect, manipulating tree and growth is used to stimulate blooms and hasten maturity. Even tree girdling is used to control crop size, while water applications are employed to force blooms.

In the grove, such practices actually mean tying horticultural technology closer to managerial goals. In Sicily, growers work with plastic - used as temporary greenhouses - to control grove temperatures, in order to flower earlier so as to fruit earlier, and thereby achieve a higher box price.

Nutritional Factors to Control
Look for ways to improve grove production areas of nutrition, irrigation, pruning, cultivation, and pest management, advised Dr. D.P.H. Tucker, Extension Area Horticulturalist, Univ. of Florida, CREC. He emphasized:

  • Selectivity with rootstocks: Select for their ability to tolerate particular soil conditions. Ask, "Will they have a positive effect on fruit size and quality, tree vigor, yield and longevity?" A poor rootstock choice can be economically devastating.
  • Utilize balance in nutrient supply - That includes balancing primarily N, P, K, and Mg nutrition (plus other secondary elements) with irrigation to influence fruit quality. (Dr. Tucker urges monitoring for soil and leaf nutrient levels, foliage and fruit deficiency, and toxicity symptoms using the fertilizer guidelines and charts supplied in SP 169, "Nutrition of Florida Citrus Trees".) Major emphasis should be placed on nitrogen management.

The Australian Citrus Industry
Glenn C. Wright, Citrus Specialist, Yuma Mesa Agricultural Center

Recent appearances of Australian navel oranges in Yuma supermarkets prompt me to report on the Australian citrus industry.

Horticulture in Australia has an estimated gross value of production of US$2.54 billion. Citrus is one of the largest horticultural industries and exporters in Australia, with an estimated gross value of production of US$280 million and exports of US$80 million in 1994/95. This compares with a gross value of production of US$37 million for Arizona citrus during 1994/95. Australia is the 4th largest citrus producing country in the Southern Hemisphere after Brazil, Argentina and South Africa. However, it ranks only 16th in the world with about 1% of global citrus production.

Citrus fruits are grown commercially in all states except the southernmost island of Tasmania. Around 80% of all Australian citrus is grown in the major irrigated horticultural regions of New South Wales, along the River Murray in Southern New South Wales and northern Victoria (Sunraysia and Mid-Murray) and the Riverland region of South Australia. The Central Burnett region of Queensland, and production in Western Australia accounts for the majority of the balance.

New South Wales grows approximately 35% of total Australian citrus output. South Australia follows with 33%, Victoria 21%, Queensland 9%, Western Australia 2% and Northern Territory with 0.03%.

There are approximately 3,000 citrus growers, cultivating 79,000 acres of land in Australia. The largest numbers of growers are situated in the Riverland region of South Australia. Of the nearly 1,000 citrus holdings in South Australia, 83% are 25 acres or less in size. In Australia, most citrus farms are mixed fruit growing operations and are relatively small, with the area harvested being around 45 acres.

Total Australian citrus production over the last 5 years has been gradually increasing from 566,000 tons in 1988-89 to 794,000 tons in 1994-95. This can be attributed to increases in production of navel and 'Valencia' oranges and mandarins. Grapefruit, lemons and limes have seen a decrease in overall production.

Australian citrus producers are actively seeking to export their fresh fruit to Asia and the US. The Australian government recently awarded US$7 million over five years to the citrus industry to help it diversify its marketing away from the volatile and low value juice concentrate market and towards the more profitable fresh fruit and fruit juice market. These funds will help the industry to overcome quarantine impediments to export market access, to assist the industry to make technical and varietal adjustments in orchards to improve international competitiveness, and to promote Australian citrus exports.

Significant gains have been made within the past year. Thailand agreed to accept fresh Australian citrus in 1995. This deal could be worth up to US$16 million. Japan has agreed to accept exports of fresh oranges and lemons in 1996 Australian exports to Japan totaled US$6 million in 1994/95, but will increase if market access into Japan is gained for mandarins, tangelos and tangors. These fruits are currently the subject of technical negotiations with Japanese authorities. Australian navels also compete with 'Valencias' in the US market.


US growers and shippers will likely see increased competition from Australian citrus in the Pacific Rim. Australian citrus growing areas are modern and have all the infrastructure necessary for exportation. Most areas are fruit fly free. There is an active partnership between the industry and government to increase exports. Australian growers are closer to many Asian markets than is the US grower. Counter seasons with the northern hemisphere will mean that competition is greatest during July, August and September.

Letters . . .
Volume 4, Issue 4., August - September, 1997

These letters reflect the some dialogue that has taken place in Washington regarding open access of Arizona citrus fruit to the world market. Arizona growers should continue to contact their elected officials as well as Administration officials regarding their progress in negotiating market access for Arizona citrus.

The Honorable Dan Glickman, Secretary of Agriculture
U.S. Department of Agriculture
12th St. and Jefferson Drive S.W.
Washington D.C. 20250

Dear Mr. Secretary:

In view of the Administration's expressed interest in securing so-called "fast track" authority to negotiate expanded free trade agreements with trading partners like Chile, I listened with heightened interest to your announcement May 14, about the Department's success in securing an agreement from Chile to finally open its market to U.S. citrus fruit. Since most of Arizona's citrus production is located in my congressional district, I was dismayed to learn this long-awaited and now celebrated market opportunity for our citrus production did not include Arizona.
Insofar as Arizona has the least number of phytosanitary incidents of any citrus producing state and has never suffered Mediterranean fruit fly infestation or outbreak, I question why Arizona was not included in this market opening agreement with Chile. Did USDA fail to include Arizona in its long negotiated market expansion with Chile? What remedial action to correct this inequity will now be undertaken by the Department?

Furthermore, I question why USDA seems to consistently fail to include Arizona citrus production in its efforts to secure foreign market access. Unfortunate-y, this development with Chile is not an isolated or unique experience for us. To date, USDA has failed to submit a work plan to China for proposed Arizona-grown citrus exports to that country. It is my understanding that U.S. citrus trade to China is now being negotiated as part of WTO accession requirements and that work plans for all other citrus producing states have been submitted to the Chinese by USDA. If that is true, why not for Arizona? Arizona citrus continues to be excluded from Thailand while California citrus is readily accepted. Only recently - and following intervention by Members of the Arizona congressional delegation - did Mexico finally agree to end its quarantine of Arizona citrus and open its market to our products. While I welcome this development, I do not understand why Arizona was for so long excluded from that market while other states qualified for market access despite Arizona's superior phytosanitary history.

Arizona, while enjoying the lowest level of phytosanitary incidents, seems to suffer sole exclusion of its products from foreign markets because of alleged phytosanitary concerns, a matter that comes under the authority of your Department. In the interest of our state, I ask you to address these issues and advise me of your intended actions to resolve these apparent discrepancies.

Sincerely,

ED PASTOR
Member of Congress

Honorable Ed Pastor
U.S. House of Representatives
2465 Rayburn House Office Building
Washington, D.C. 20515

Dear Ed:

Thank you for your letter of May 1, 1997, cosigned by the other members of the Arizona congressional delegation, concerning the Department of Agriculture's (USDA) efforts to gain market access for Arizona citrus to the People's Republic of China (PRC).
I understand your concerns about the trade restrictions imposed by PRC officials, and I assure you that USDA remains committed to its firm stance against all restrictions that are not based on legitimate scientific concerns. USDA officials met with PRC officials in April 1997 to discuss the exportation of U.S. citrus. In addition, officials from our Animal and Plant Health Inspection Service (APHIS) have worked with U.S. citrus industry representatives to develop a work plan to address PRC official's pest risk concerns, which include the Western flower thrip, Fuller's rose beetle, and the Mediterranean fruit fly (Medfly). With regard to Medfly, PRC officials continue to have reservations concerning the eradication of this pest from California. APHIS officials plan to meet with their PRC counterparts shortly to address their concerns about Medfly specifically and to offer evidence of its eradication from California. Additionally, USDA has been working closely with officials from the Office of the U.S. Trade Representative as they negotiate with Chinese officials on behalf of the U.S. citrus industry.
Thank you again for writing. You may be assured that we will continue to work with PRC officials to gain market access for Arizona citrus to the PRC in the most expeditious manner possible. We are providing this same information to the other Members of Congress who signed the letter.

Sincerely,

DAN GLICKMAN
Dept. of Agriculture Secretary

The Honorable Ed Pastor
U.S. House of Representatives
Washington D.C. 20515

Dear Congressman Pastor:

Thank you for your recent letter addressing Arizona citrus growers' access to the China market. China's continued restrictions on imports of U.S. produce on the supposed ‘basis' of phytosanitary codes is an unacceptable trade barrier.
There were a number of submissions from U.S. citrus growers to our Federal Register on China's WTO accession (March 15, 1997) voicing similar concerns. We clearly understand the barriers growers face and are working closely with citrus commodity groups and with USDA to press the Chinese to open their market to U.S. citrus.
To this end, I have appointed Peter Scher as Special Trade Negotiator. He recently traveled to China to meet with senior agricultural officials. Resolving such trade barriers and opening the Chinese market for U.S. citrus is at the top of his agenda.
Thank you again for your concern on this issue, and I assure you of our ongoing endeavor to create an open, legitimate and equitable trading framework with China for U.S. citrus imports.

Sincerely,

CHARLENE BARSCHEFSKY
U.S. Trade Representative

Editorial - Marketing Lemons: We Can Do a Better Job
Glenn C. Wright
Volume 5, Issue 1. December 1997 - January 1998

Winter is the time of year when lemon prices are normally quite low. This year, prices for lemons seem to be lower than usual, so the grumbling coming from lemon growers seems to be a little louder than is normal. And despite Sunkist's claim to be "in the driver's seat" (Sunkist Newsletter Vol. 2, No. 50, 12/23/97), their subsequent acknowledgment that "low competitive pricing continues to be offered on virtually every size and grade"(Sunkist Newsletter Vol. 3, No. 1, 1/6/98)) seems to reflect more accurately upon the reality of the market.

So, some would say that we are paying the price for the loss of the Lemon Administrative Committee, and would suggest that we attempt to re-establish a marketing order, but I doubt that in this era of "free trade" that we will ever see a citrus administrative order again.

Furthermore, we face other disturbing trends that may make it more difficult to sell lemons. Most immediate is the current Asian financial crisis. Many of our best Asian customers are facing economic hardship or collapse that will make it more expensive for the general populace to buy expensive foreign fruit. In the most extreme example, the Indonesian rupiah has fallen 70% against the dollar since last summer, eroding the purchasing power of most Indonesians. Few will want to buy lemons when they can barely afford rice.

More important from the long-term perspective is the increasing presence of other lemon producing nations in the worldwide lemon industry. Forecasts suggest that by 2001, Argentina will have virtually equaled the United States as the world's foremost lemon producer. Argentine lemons already have been exported to Europe and the US, and there is no reason why they will not target Asia. Additionally, Turkey poses a threat to Spain and Italy in the European lemon market, and China's lemon production is increasing rapidly (See article and graphs below).

Based on my limited understanding of economics, there are two ways of increasing lemon prices: reduce supply or increase demand. Since the likelihood of reduced supply is slim, it seems to me that the US lemon industry should concentrate on increasing demand for its product. I do not mean that we need to have better salespersons, but rather that we need to convince both the foreign and domestic customer to buy more fruit. In the US, the younger generations do not think as their parents do, they must be persuaded of the need to buy lemons. It seems to me that we are not doing a good enough job of persuasion. As I have traveled in Europe and the US during the past year, I have seen some excellent examples of lemon marketing that we might employ here. In the rest of this article, I would offer some suggestions as to what we might do or probably shouldn't do to improve domestic demand. Many of my suggestions might be employed internationally as well.

Traditionally, most citrus fruit is marketed in the US in bulk. Fruit is not packaged, but is boxed. Loose fruit is then dumped in the produce section, sandwiched between the Texas grapefruit and the Washington apples. When the fruit is presented to the consumer like this, the consumer may purchase as many or as few lemons as he or she wishes. Most consumers may choose only one or two. This may be good for the consumer, but it is not good for the lemon producer or packer. We must rethink this manner of marketing, and ask ourselves two important questions.

First, we must ask, "Why should the customer be able to purchase just one or two lemons?" Most lemons should be sold to the consumer in packages of three, four or six fruits. In addition to bulk packaging, Spanish lemon packers provide lemons in mesh bags, in plastic boxes (as greenhouse tomatoes are packaged); on plastic or cardboard trays with plastic wrapping, and as fruit individually wrapped in plastic. In many cases, the customer is forced to purchase several lemons.

The argument could be made that the US consumer might not purchase packaged lemons, because he or she does not need four or six at a time. Spanish packers have attempted to remedy this situation by printing recipes on the packaging. All packaging except bulk and individually wrapped fruit has a recipe attached. The most innovative packaging method that I saw involved the use of the mesh bag. Six lemons were placed in a square bag that had a four-inch wide paper strip stitched to two opposite sides. The paper strip was intended to be the handle for the bag, and the lemon brand name and a recipe using lemons was printed on the strip. When these bagged lemons were bulked in a display, ten to twelve different recipes could be found among the bags on display. In this way, when the consumer was forced to buy lemons, he or she was given an idea of what to do with them. When the consumer is unfamiliar with the uses of a product, sometimes a little encouragement will lead to a purchase.

The second question we must ask is: "Why should a consumer purchase a lemon rather than the apple or pear?" Some would say that brand name recognition is a good reason, but I would have to disagree. Although Sunkist and Dole are widely recognized, everyone has also heard of Washington apples, or California pears, so it seems to me that for fresh fruit, the Sunkist or Dole brand has no advantage. Furthermore, given the common bulk marketing system for lemons, I doubt that Sunkist or Dole should rely on their name for a sales boost. The fact is that most retailers have but one location for lemons, and the brand that fills that location is the one that the produce buyer can get at the lowest cost. Many times, I have seen Sunkist or Dole fruit mixed with fruit from independent houses in the same location. (I have also seen California/Arizona tangerines mixed with Florida tangerines, and I have seen California/Arizona grapefruit offered in bins from Texas).

When one looks at a fresh lemon, there is little or no indication of its origin, usually only the PLU sticker or ink stamp on the fruit. Even when fruit is bagged, there is little more information on the bag than the name of the brand, packer and shipper. Can you imagine marketing breakfast cereal in this way? Lemons should be packaged so that the consumer may be convinced that buying lemons is preferable to purchasing that apple or pear. Packaging could extol the health benefits of the lemon, the amount of vitamin C in a lemon, or the relative lack of calories in a lemon. Comparisons could be made between lemons and other fruit. Of course, a recipe should be printed on the packaging as well.

Recently, we have seen relatively little advertising for California/Arizona citrus fruit. I believe that a national advertising campaign would be helpful in stimulating demand for lemons. The younger generations must be "sold" on the use of lemons. The counter argument is that national advertising is expensive, yet Florida citrus growers have advertised for years. If California/Arizona growers have a smaller advertising budget, then perhaps a targeted advertising approach would be helpful.

Lemons should be advertised in that portion of the media that will provide the most return. Florida growers have placed ads in national food magazines, promoting orange juice as a replacement for oil in some recipes. Lemons could be advertised in food publications, health magazines and women's magazines. Ads should be placed in the weekly food sections of major newspapers. Lemons should be promoted in major food service trade journals, and in mailers to chefs around the country. School cafeterias, airlines, hotels and motels, and convenience stores should be targeted as well as restaurants. Grocery store promotions should include flyers with lemon recipes and ideas for using lemons, placed strategically around the product display.

Lemon promotions should be tied in with other products. In Spain, every glass of cola or bottled water that is served in a restaurant comes with a twist of lemon. Since soft drinks are more popular in the US than fruit juices, this would create a huge new market for lemons. National advertisements could be placed that show a tall frosty glass of cola, with a lemon slice prominently floating on the surface for that added "zing!" Banana producers have teamed up with Nabisco™ Inc. Consumers who purchase two boxes of Nilla® wafers cookies can receive 55¢ off a purchase of bananas, using the peel-off coupon on the cookie box. Why cannot similar promotions be done with lemon? Consumers could receive a discount on lemons with the purchase of tea, or could receive a discount on fish with the purchase of lemons.

Lemon growers can do their part too. The Florida Department of Citrus provides growers with business cards that are meant to be placed on the tables at restaurants. The cards say "The food was excellent, BUT where is the Florida Orange Juice on the menu?" The underside of the card emphasizes that Florida growers will support business that sell Florida citrus fruit. A similar card could be made for lemon; "… The food was excellent, BUT where was the lemon? …" Table tents, server buttons, window decals and other items promoting California/Arizona lemons could be made available to restaurants.

Of course, marketing lemons will require some more funding. It will be expensive, but nothing that is good comes without sacrifice. Better marketing of lemons will require some organization. Perhaps a lemon marketing board can be formed. Most importantly, marketing lemons will require some progressive thinking. New ideas must be thought of, and put into practice, while old tired ideas must be thrown out. It will take some risk. But consider the possible successes. Take the cranberry; a small sour berry that's not just for Thanksgiving anymore. With aggressive marketing, cranberries can be found in dozens of products that were unheard of twenty-five years ago. Hopefully, lemon marketing will lead us down that same path.

Do you agree with me, or am I completely wrong? If you agree, please write me, then copy this article and send it to those whom you think will benefit. If you disagree please let me know as well. I will print all letters related to this article in a future issue of the Arizona Citrus Newsletter.

 

World Lemon Production Charts
Volume 5, Issue 1. December 1997 - January 1998

Argentine Lemon Production
by the USDA Foreign Agricultural Service
Volume 5, Issue 1. December 1997 - January 1998

Argentina is the second largest producer of fresh lemons in the world, after the U.S., but expects to eventually take the lead. Currently more trees are coming into production as well as older trees (25+ years) are being replaced Some growers are switching to dwarf trees and planting at closer distances in order to reduce the need to acquire more land and still plant more trees.

Argentina has increased its lemon exports the past three years by 73, 17 and 49 percent respectively. The Netherlands continues to be Argentina's main purchaser, followed by France, Spain and Russia. In 19% the U.K., Portugal, and Canada also imported Argentine lemons. Argentine and U.S. officials are discussing the entry of Argentine fruit into the U.S.; the fruit could possibly meet our phytosanitary standards by April of 1998.

Background

Argentina's total citrus production in 1997 is forecast at 114,879 carloads, 2 percent below last year. The orange crop in 1997 is forecast to decrease 5 percent to 39,389 carloads. This is attributed to drought in some of the growing areas and the trees entering a rest phase following good output last year. Smaller tangerine and grapefruit crops forecast due primarily to poor weather conditions. Domestic consumption of citrus fruit in Argentina has declined 5 percent due to reduced purchasing power of Argentine consumers.

Total citrus exports in 1997 are forecast to decrease 8 percent to 16,372 carloads. This drop is due mainly to devaluation of the European currency versus the U.S. dollar. Because all Argentine citrus exports are priced in U.S. dollars, the fruit is more expensive overseas and therefore harder to sell. In the case of lemons, Argentine exports to Spain are projected to drop due to improved weather conditions which have increased Spain's lemon crop this year. Orange, tangerine and grapefruit exports are also forecast to decline this year due to smaller harvests. Argentina's imports in 1997 are forecast unchanged at 526 carloads, which are comprised completely of grapefruit. In 1996 the largest percentage of the grapefruit came from Paraguay (218 carloads), followed by Cuba (132 carloads), Israel (78 carloads) and lastly the US (16 carloads); Florida citrus is prohibited from entering Argentina due to phytosanitary concerns. Argentina does produce its own grapefruit averaging about 13,000 carloads per year (fourth in world grapefruit production behind the U.S.-193,000 carloads, Israel-28,000 carloads and Cuba-15,000 carloads). Processing in Argentina is expected to increase 6 percent. This increase is the result of record lemon harvest, expected lower fresh exports and more damaged oranges not fit for domestic consumption.

Argentine lemon production is harvested year round with the bulk of the harvest taking place from May to August. Argentine production of fresh lemons in 1997 is expected to increase 4 percent to a record 43,515 carloads. This is due mainly to good weather conditions in the growing area -notably in Tucuman Province, where nearly 80 percent of the Argentine lemon production occurs - and more trees coming into production. Some Argentine growers seem intent to replace older (25 years +), taller tree varieties by switching to dwarf trees and planting at closer distances, 2.5 x 2.5 meters Presently, some growers are using a variety called Flying Dragon which, reportedly, responds well in that province. It is their view that by using dwarf trees, they reduce need to acquire more land, and save time and money at harvest time by not requiring ladders. Other growers who do not want to change are buying more land to expand their groves and maintain their planting density at 4 x 4 meters. Within the last two years, the area planted in lemons in Tucuman has increased by 10-12 percent compared to previous years at a 5 percent growth rate. The Tucuman area of Argentina is now the second largest world producer after the US. Tucuman has about 30,000 hectares (74,100 acres) of land devoted to lemons, with another 100,000 hectares (247,000 acres) of land suitable for lemon production. According to the U.S. agricultural attache in Buenos Aires, Argentina eventually expects to overtake the U.S. as the largest producer of lemons. During the last three years, Argentina has increased its lemon exports by 73, 17 and 49 percent respectively. During calendar year 96, Argentina exported 9,573 carloads of fresh lemons (49 percent above the previous year). The Netherlands continues to be Argentina's main purchaser, taking 50 percent of total shipments (4,767 carloads ). France takes 18 percent (1,740 carloads), Spain takes 12 percent (1,132 carloads) and Russia takes 618 carloads (a 50 percent increase purchase over 1995). Other importers of Argentine lemons in 1996 included the U.K. (670 carloads), Portugal (222 carloads), and Canada (147 carloads).

Despite the projected larger lemon crop, exports are likely to decrease by 9 percent due to European currency devaluation (with the exception of the U.K.) reducing the per box value by $ 1.00 to $ 1.50.

All fresh citrus exports receive a 5.4 percent rebate and citrus juices an 8. 1 percent rebate.

Prices: The 1997 average price of fresh lemons paid to producers is $270 per ton ($4.66 per carton) compared to $3 10 per ton ($5.34 per carton) in 1996, average price paid to processing is $63-70 per ton ($90-100 in 1996); average retail prices for fresh lemons range from a high of 1.97 pesos per kilo to a low of .3 9 cents, depending on quality; export price per box of 18 kilos is quoted at US$ 9.00 FOB Buenos Aires (US$ 10.00 in 1996).

Current situation (as of August 26, 1997)

Approximately three years ago, Argentina petitioned the U.S. for certification for certain citrus fruit to be allowed into the U.S. market - lemons, grapefruit and sweet oranges. Technical personnel from APHIS have been working with Argentine officials to devise relevant scientific protocols and schemes to assure that Argentine fruit meets our sanitary and phytosanitary requirements. Issues of concern are: black spot, canker, scab and fruit fly. The biological staff at APHIS is presently in the final stages of reviewing and analyzing the Pest Risk Assessment which they expect to complete by the end of September. From conversations with various APHIS personnel working on this matter and familiar with the Argentine data, it appears Argentine fruit will likely qualify for entry into the U.S. possibly as early as next April. If conclusion of the Pest Risk Assessment conducted by APHIS is that the Argentine fruit meets U.S. sanitary and phytosanitary standards, USDA will commence the formal rule-making process with a "notice of proposed rule-making" published in the Federal Register, allowance for public comment, notice of final rule. APHIS personnel advised me that regarding black spot, they are confident Argentina can produce clean fruit; citrus canker will be addressed by restricting shipment only from certified canker free growing areas; APHIS recognizes the growing area of northwest Argentina as "canker free"; scab can be excluded by ready detection on the packing line; fruit fly can be addressed by required cold treatment. APHIS would establish with the Argentines a complete and comprehensive regimen involving requirements for grove sanitation, sprays, inspections in the packing houses, detailed post harvest work, fungicide sprays, etc.

Argentine Import Policy for U.S. Citrus Fruit

Argentina does not impose any sanitary or phytosanitary quarantines against citrus fruit imported from Texas or Arizona. Only lemons are presently permitted for import from California and only from certain counties, many of which are not lemon producing and to the exclusion of some of our major lemon producing areas, notably Ventura, Santa Barbara and Monterey. Citrus imports into Argentina are presently certified only for the following counties in California: Butte, Colusa, Fresno, Glenn, Kern, Kings, Madera, Merced, Placer, Sacramento, San Joaquin, Solano Stanislas, Sutter, Tulare, Tehama Yolo, and Yuba. Argentina cites the periodic siting of Oriental Fruit Fly in the coastal counties as reason for exclusion. The entire state of Florida is quarantined from shipping citrus fruit to Argentina because of canker and Caribbean fruit fly. Clearly, if the U.S. intends to grant access to Argentine citrus into the U.S. from certain production areas, we should insist upon reciprocal market access for California and Florida fruit into Argentina.

The information given herein is supplied with the understanding that no discrimination is intended and no endorsement by The University of Arizona Cooperative Extension is implied.